CLA-2 OT:RR:CTF:TCM H273313 TSM
Matthew R. Taylor
Enixus Apparel
14934 Gagely Drive, Suite G
La Mirada, CA 90638
RE: Tariff classification of a knit bonded fabric
Dear Mr. Taylor:
This ruling is in response to your request for a ruling dated July 3, 2015, filed on behalf of Enixus Apparel (“Enixus”) requesting a binding ruling on the tariff classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) and country of origin of a knit bonded fabric to be used in the manufacture of performance outerwear. Your request has been forwarded by the National Commodity Specialist Division to this office for a reply.
FACTS:
The fabric at issue is a weft knit bonded fabric, style “AMSHELL09001 MERINOSTATE M/SHELL LITE BL/BL,” to be used in the manufacture of performance outerwear. Wool single jersey fabric weighing 130 grams per square meter (g/m²) is knitted in Australia, and then sent to China. In China, a polyester interlock fabric weighing 108 g/m² is knitted and then laminated to the Austrian wool knit fabric. The two fabrics are joined together by means of a thermoplastic polyurethane (TPU) adhesive, weighing 42 g/m². The total weight of the bonded fabric is approximately 280 g/m². In your request, you note that the wool fabric costs more and weighs more than the polyester fabric.
ISSUE:
What is the tariff classification and country of origin of the bonded knit fabric at issue?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
GRI 2(b) provides, in pertinent part, that the classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.
GRI 3 states that, when by application of GRI 2(b) goods are prima facie classifiable under two or more headings, classification shall be effected as follows:
...when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods… those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
Mixtures, composite goods consisting of different materials or made up of different components,...which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
The 2017 HTSUS provisions under consideration are as follows:
5515 Other woven fabrics of synthetic staple fibers
* * *
6006 Other knitted or crocheted fabrics
6006.10.00 Of wool or fine animal hair
* * *
Of synthetic fibers:
6006.32.00 Dyed
* * *
In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
EN to Rule 3(b) provides the following:
(VI) This second method relates only to:
(i) Mixtures.
(ii) Composite goods consisting of different materials.
(iii) Composite goods consisting of different components.
(iv) Goods put up in sets for retail sales.
It applies only if Rule 3 (a) fails.
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
(IX) For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.
In your submission, you argued that the fabric at issue is classified in heading 5515, HTSUS, which provides for “Other woven fabrics of synthetic staple fibers.” We disagree, since the both the wool and the polyester combination fabric at issue is of knit construction, rather than woven. Therefore, we find that classification under heading 5515, HTSUS, is inappropriate.
Upon review, we find that the fabric at issue is a composite good consisting of the following components: (1) knitted wool single jersey fabric; and (2) knitted polyester interlock fabric. Pursuant to GRI 3(b), composite goods are classified by the component which gives them their essential character. Essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the article. See Better Home Plastics Corp. v. United States, 916 F. Supp. 1265 (CIT 1996), affirmed, 119 F.3d 969 (Fed. Cir. 1997). See also ENs to GRI 3(b).
We note that two HTSUS subheadings are under consideration: subheading 6006.10.00, HTSUS, which provides for “Other knitted or crocheted fabrics: Of wool or fine animal hair,” and subheading 6006.32.00, HTSUS, which provides for “Other knitted or crocheted fabrics: Of synthetic fibers: Dyed.” We have determined that based on the relative values and weight of the two fabrics, it is the wool fabric that imparts the merchandise at issue with its essential character. Therefore, we conclude that the fabric at issue, style “AMSHELL09001 MERINOSTATE M/SHELL LITE BL/BL,” is classified under subheading 6006.10.00, HTSUS, as a knitted fabric of wool.
HOLDING:
Under the authority of GRIs 1 and 6, the “AMSHELL09001 MERINOSTATE M/SHELL LITE BL/BL” fabric is classified under subheading 6006.10.00, HTSUS, which provides for “Other knitted or crocheted fabrics: Of wool or the fine animal hair.” The 2017 column one, general rate of duty is 10% ad valorem.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch